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DEFINITION of 'Federal Poverty Level-FPL'. The set minimum amount of gross income that a family needs for food, clothing, transportation, shelter and other necessities. In the United States, this level is determined by the Department of Health and Human Services. FPL varies according to family size. The number is adjusted for inflation and reported annually in the form of poverty guidelines. Public assistance programs, such as Medicaid in the U.S., define eligibility income limits as some percentage of FPL.
According to the federal government, poverty level was defined in 2012 as an annual income of $23,283 or less for a family of four, or $11,945 for an individual. The overall poverty rate for North Carolina in 2012 was 17.2 percent, according to the U.S. Census Bureau's American Community Survey.